Management and Organizational Studies 2275A/B Study Guide - Real Wages, Potential Output, Workforce Productivity

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Henry Meredith

Document Summary

Germany, italy, and the united kingdom), and the united states since 1960. Growth in japan was very rapid during the 1960s, slower during the 1980s, and even slower during the 1990s. Cchhaannggeess iinn ppootteennttiiaall ggddpp labour productivity: potential gdp increases if there is an increase in population or an increase in, an increase in population increases the supply of labour. In the figure, the labour supply curve shifts rightward from ls0 to ls1, the real wage decreases and the quantity of labour employed at full employment increases. In the figure below, the increase in the full-employment level of labour increases potential gdp from ,000 billion to ,300 billion along the production function. work: with an increase in population, potential gdp per hour of work decreases. Potential gdp per hour of work also increases from to . 67: labour productivity is the quantity of real gdp produced by an hour of labour,